Sankey charts are a type of visual representation of complex flows of information, data, or energy. Unlike bar charts or line charts, which show the total or accumulated amounts of a variable, sankey charts illustrate the source and destination of flows of a particular type. In this article, we will explore the tools and tips for creating and using sankey charts in business analysis.
What are Sankey Charts?
Sankey charts are created by plotting the amount of the source variable as the x-axis and the amount of the destination variable as the y-axis. The distance between the points in the chart represents the flow of the data.
Sankey charts are commonly used to show:
Money flows between different projects, investments or businesses.
Water flow between different reservoirs.
Traffic flow between different states or regions.
Supply chain flow between different suppliers or distributors.
In addition, sankey charts can be used for:
Understanding complex systems.
Visualizing data flows.
Analyzing energy usage.
Calculating efficiency.
The process of creating a sankey chart involves several steps. First, you need to decide the type of information or variable you want to represent. For example, if you want to show the flow of revenue from one department or employee to another, you can use a sankey chart. Next, you need to identify the different types of data or flows you want to represent. Then, you can create the sankey diagram by connecting the points in the chart with arrows that represent the direction of flow. Finally, fill in the data for the chart to show the actual values or relationships.
Applications of Sankey Charts in Business Analysis
Sankey charts can be used in various business analysis tasks to assist analysts in identifying patterns, trends, and relationships in business data. These charts are particularly useful in:
Estimating future cash flow.
Analyzing supply chain efficiency.
Deciding on investments or acquisitions.
Creating forecasts.
Organizing project resources.
In other words, sankey charts can provide a high level of detail and insight into complex systems like financial, manufacturing, and service operations. They are particularly useful when there are multiple sources and destinations of data within a system.
Tools for Creating Sankey Charts
There are a variety of tools available to create sankey charts from scratch. Some of the popular options include SankeyCharts.com, GraphSketch.com, and DrawingFlow.com. These tools provide the necessary software tools and functionality to quickly and easily create sankey charts. Other useful resources include websites that offer sankey chart templates or provide guidance and examples for building custom sankey charts.
In conclusion, Sankey charts are a powerful visualization tool for business analysts. They provide a unique way of understanding complex flows of data and can help analysts identify patterns and relationships in business data. As businesses become more complex, business analysts will need to rely on sankey charts to provide them with valuable insights. By choosing the right tools for creating sankey charts and using them effectively, business analysts will be better prepared to make data-driven decisions.
SankeyMaster
SankeyMaster is your go-to tool for creating complex Sankey charts . Easily enter data and create Sankey charts that accurately reveal intricate data relationships.
